RandallHallAC202Quiz7

RandallHallAC202Quiz7 - C. Sales price per unit less total...

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AC 202 Principles of Accounting Name Randall Hall Park University Quiz 7A-Chapter 22 Multiple Choice Questions ( 10 points Each ) Select the ONE, BEST Answer 1. A cost that changes in proportion to changes in volume of activity is a(n): D. Variable cost. 2. A target income refers to: C. Income planned for a future period. 3. The excess of expected sales over the sales level at the break-even point is known as the: E. Margin of safety. 4. In cost-volume-profit analysis, the unit contribution margin is:
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Unformatted text preview: C. Sales price per unit less total variable cost per unit . Problem ( 60 points ) 1 The following information describes a product expected to be produced and sold by Hadley Company: Required: (a) Calculate the contribution margin ratio. (80-32) / 80 = 0.6 (b) Calculate the break-even point in dollar sales. 630,000 / 0.6 = 1,050,000 (c) What dollar amount of sales would be necessary to achieve a pretax income of $120,000? (630,000 + 120,000) / 0.6 = 1,250,000...
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This note was uploaded on 07/10/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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RandallHallAC202Quiz7 - C. Sales price per unit less total...

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